Jamie Dimon says 'booming' markets and a 'fine' consumer fueled JPMorgan's blowout profits

By Tomi Kilgore

Banking giant's stock rises into record territory, after revenue in each of the business segments reached records amid a surge in equity-markets revenue

JPMorgan blew past earnings expectations for the second quarter, as CEO Jamie Dimon said markets are booming.

Shares of JPMorgan Chase rallied into record territory Tuesday, after the banking giant reported blowout second-quarter profits, as an acceleration in investment-banking fees and activity highlighted record performances in each business segments.

The strong results come as CEO Jamie Dimon pointed to "notable resiliency" in the U.S. economy, saying that capital investment in artificial intelligence and fiscal stimulus led to stronger business investment and hiring.

"The markets are booming right now," Dimon said on a post-earnings call with reporters, and "it's pretty broad based." The consumer is "fine," he said, and in slightly better shape in the past quarter, as tax refunds and a resilient labor market have offset higher gas prices and inflation.

In a sign of the health of the consumer, the bank lowered its 2026 outlook for the net charge-off rate, which is the percent of loans written off as uncollectible, to 3.2% from previous guidance of 3.4%.

The stock (JPM) surged 2.8% in recent morning trading, to trade above the July 7 record close of $339.22.

Strong bank earnings were certainly a theme on Tuesday, as the other four big banks that reported earnings - Bank of America (BAC), Wells Fargo (WFC), Goldman Sachs (GS) and Citigroup (C) - all beat earnings expectations by wide margins. The stocks of both Bank of America and Goldman were also trading in record territory.

Separately, Dimon listed several risks that were "shifting below the surface," such as geopolitical tensions and wars, stubborn inflation, large global fiscal deficits and "elevated asset prices." While he said he can't predict how those risks may unfold, he believes they remain manageable.

When asked if the AI buildout was reaching bubble proportions, Chief Financial Officer Jeremy Barnum called it a "generational" and "crazy" thing but said that making predictions on how it plays out "is a fool's errand." Barnum said the bank was being "appropriately skeptical," but that it wouldn't move to the sidelines for no reason.

The bottom line, Barnum said, is that despite all the risks, the market environment is extremely supportive, and activity is begetting activity.

For the quarter to June 30, net income jumped 41.2% from a year ago to $21.16 billion, and earnings per share rose to $7.70 from $5.24, beating the average analyst estimate compiled by FactSet of $5.59. The margin of the EPS beat was the widest since the first quarter of 2021.

Net interest income, which is the what the company makes from interest-bearing assets after paying out interest expenses, was up 9.9% to $25.51 billion, but that was just below the FactSet consensus of $25.68 billion.

Total revenue rose 27.7% to $57.35 billion, well above the FactSet revenue consensus of $51.09 billion.

Among the bank's business segments, the commercial- and investment-banking business saw revenue climb 27.2% to $24.85 billion, as markets and securities revenue grew 33.1% to $13.69 billion, including an 86% surge in equity-markets revenue to $6 billion. Investment-banking revenue was up 45% to $3.9 billion.

Consumer- and community-banking revenue rose 7.6%, to $20.27 billion, while asset- and wealth-management revenue increased 18.9%, to $6.85 billion.

Return on tangible common equity, a standard measure of profitability for banks, improved to 29% in the latest quarter from 21% a year ago. That was way ahead of the consensus estimate of 20.1% among analysts polled by LSEG.

Looking ahead, the bank raised its guidance for net interest income to $105.5 billion from $103 billion, while also raising its outlook for adjusted expenses to $107.5 billion from $105 billion.

JPMorgan's stock has gained 6.7% in 2026 through Monday, while the State Street SPDR S&P Bank ETF KBE has rallied 13.9% and the S&P 500 index SPX has advanced 10.1%.

-Tomi Kilgore

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07-14-26 1120ET